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SkyWest (SKYW) Q3 Earnings & Revenues Top Estimates, Fall Y/Y

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SkyWest's SKYW third-quarter 2020 earnings per share of 66 cents surpassed the Zacks Consensus Estimate by 57 cents. However, earnings declined 63.1% year over year due to coronavirus-induced low air-travel demand.

Moreover, quarterly revenues of $457.5 million plunged 39.8% year over year but surpassed the Zacks Consensus Estimate of $426.8 million. The COVID-19 pandemic caused a significant cut in the number of scheduled flights, thereby inducing the year-over-year decline in the top line.

Revenues from flying agreements (contributing 97.27% to the top line) decreased 39.7% from the year-ago quarter’s figure. Total expenses (on a reported basis) fell 37.6% to $382.94 million due to the reduced number of flights operated in the Jul-Sep period. The carrier, which carried 57.5% less passengers during the reported quarter, reported a 40.8% decline in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) deteriorated 29.8 points to 54.1% in the September quarter due to the shrinkage in air-travel demand.

Meanwhile, SkyWest entered into an agreement with American Airlines AAL to place 20 used CRJ700s under a flying contract with the latter.

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote

Liquidity

SkyWest, currently carrying a Zacks Rank #3 (Hold), exited the third quarter with cash and marketable securities of $822 million, up from $520 million at 2019 end. Long-term debt (net of current maturities) was $2.7 billion compared with $2.63 billion at 2019 end.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sectorial Snapshots

Let’s take a look at some other Zacks Transportation sector companies’ third-quarter earnings.

Southwest Airlines LUV incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.

Trinity Industries TRN reported third-quarter 2020 earnings (excluding 4 cents from non-recurring items) of 17 cents per share, massively surpassing the Zacks Consensus Estimate of 5 cents. Total revenues of $459.4 million also outperformed the Zacks Consensus Estimate of $443.8 million

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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
 
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
 
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
 
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
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